Crypto Targeted for Stiff Banking Regulation

The top global standard setter for banking regulation — The Basel Committee for Banking Supervision, a group of global central bankers and regulators — proposed a strict new rule that would require banks to set aside a dollar in capital for every dollar of bitcoin or other crypto assets they own. Stablecoins (cryptocurrencies pegged to traditional assets) would be subject to lower capital requirements.

The Basel Committee (which includes the Federal Reserve, European Central Bank and other major central banks) gave banks until September 10 to respond to the proposal. Importantly, the committee doesn’t enforce rules; it sets standards that regulators around the world agree upon and implement locally.

This kind of proposal has been predicted by crypto experts for quite some time, so it may not have much impact on the way the DeFi community thinks about its relationship with traditional banking systems. There are two schools of thought: 1) This is great for business, as the proposed regulation further illustrates the need for DeFi. 2) This is terrible for business because of the increased friction between the DeFi and fiat currency worlds.

If you’re looking for a place to start your crypto journey, need some help with the jargon, or just want to explore the art of the possible, I’ve got a short primer that will help you formulate your crypto/DeFi strategies. My new eBook, Blockchain – Cryptocurrency, NFTs & Smart Contracts: An executive guide to the world of decentralized finance is Amazon’s #1 bestseller in Money & Monetary Policy. It’s only $2.99 (or free with KindleUnlimited), and I’m donating my proceeds to Girls Who Code. Mark Cuban calls it “a crisp, easy to understand overview of crypto and DeFi.”

Author’s note: This is not a sponsored post. I am the author of this article and it expresses my own opinions. I am not, nor is my company, receiving compensation for it.

About Shelly Palmer

Shelly Palmer is a business advisor and technology consultant. He helps Fortune 500 companies with digital transformation, media and marketing. Named LinkedIn's Top Voice in Technology, he is the host of the Shelly Palmer #strategyhacker livestream and co-host of Techstream with Shelly Palmer & Seth Everett. He covers tech and business for Good Day New York, writes a weekly column for Adweek, is a regular commentator on CNN and CNBC, and writes a popular daily business blog. Follow @shellypalmer or visit shellypalmer.com

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